Certain Federal Acquisition Regulation Part 16 Contract Pricing Requirements - FAR Sections Affected: 52.216-2, 52.216-3, 52.216-4, 52.216-5, 52.216-6, 52.216-16, and 52.216-17
Certain Federal Acquisition
Regulation Part 16 Contract Pricing Requirements - FAR Sections
Affected: 52.216-2, 52.216-3, 52.216-4, 52.216-5, 52.216-6,
52.216-16, and 52.216-17
Revision of a currently approved collection
No
Regular
02/26/2022
Requested
Previously Approved
36 Months From Approved
02/28/2022
61,580
880
114,743
1,320
6,540,351
62,120
This clearance covers the information
that contractors must submit to comply with the following FAR part
16 requirements: ● FAR 52.216-2, Economic Price Adjustment-Standard
Supplies; FAR 52.216-3, Economic Price Adjustment-Semistandard
Supplies; and FAR 52.216-4, Economic Price Adjustment-Labor and
Material. These clauses require contractors on contracts that
provide for economic price adjustments to promptly notify the
contracting officer of any increases or decreases to established
prices or labor rates (including fringe) because of certain
contingencies, such as increases or decreases to established
catalog or market prices or changes to cost indexes for labor or
materials. ● FAR 52.216-5, Price Redetermination-Prospective.
Paragraph (c) of this clause requires a contractor on a fixed-price
contract with prospective price redetermination to submit to the
Government (within an agreed upon timeframe) a statement of costs
incurred for the most recent period of performance, the proposed
prices for the upcoming contract period, and any supporting or
relevant documentation. Per paragraph (h) of the clause, during
periods where firm prices have not been established, the contractor
must also submit quarterly statements that includes a breakdown of
total contract prices, costs, and profit incurred and all invoices
accepted for delivered items or services for which final prices
have not been established. ● FAR 52.216-6, Price
Redetermination-Retroactive. Paragraph (c) of this clause requires
a contractor on a fixed-ceiling-price contract with retroactive
price redetermination to submit to the Government (within an agreed
upon timeframe after completion of the contract) the proposed
prices, all costs incurred in performing the contract, and any
supporting or relevant documentation. Per paragraph (g) of the
clause, until final price redetermination has been completed, the
contractor must also submit a quarterly statement that includes a
breakdown of total contract prices, costs, and interim profit
incurred and all invoices accepted for delivered items. ● FAR
52.216-16, Incentive Price Revision–Firm Target; and FAR 52.216-17,
Incentive Price Revision–Successive Targets. These clauses require
contractors on fixed price incentive (firm or successive target)
contracts to submit to the Government on a quarterly basis a
statement regarding total contract prices, costs, portions of
interim profit, and amounts of invoices or vouchers for completed
work that is cumulative from the beginning of the contract (see
52.216-16(g) and 52.216-17(i)). Upon final delivery of supplies or
completion of services for covered line items, the contractor is
required to submit a detailed statement of all costs incurred up to
the end of that month in performing all work under the items; an
estimate of costs of further performance, if any, that may be
necessary to complete performance of all work under the items; a
list of all residual inventory and an estimate of its value; and
any other relevant data that the Contracting Officer may reasonably
require (see 52.216-16(c) and 52.216-17(e)). Paragraph (c) of
52.216-17 also requires submission of data for establishing the
firm fixed price or a final profit adjustment formula.
● The clause at FAR 52.216-10
previously covered under OMB Control Number 9000-0067 is removed
from this supporting statement because it does not include an
information collection requirement. As a result, the estimated
number of incentive contracts impacted no longer includes cost-type
incentive contracts. ● The estimated number of respondents and
responses per year is based on the average of FPDS data for the
three most recent fiscal years (2018 through 2020). The parameters
for data pulled from FPDS for each clause is consistent with the
prescription for each clause, resulting in changes to the number of
respondents and average contracts per respondent for the individual
burden estimates. ● The estimated number of responses for the
clauses at FAR 52.216-2, 52.216-3, and 52.216-4 are reduced from
758,432 total responses to 44,370 total responses. The prior
estimate under OMB Control No. 9000-0068 cited FPDS data for FY
2018; however, it appears that the report included delivery orders.
For this revision, delivery orders are excluded from the report,
since it is assumed that economic price adjustments would occur at
the contract line-item level. ● The clauses at FAR 52.216-5,
52.216-6, 52.216-16, and 52.216-17 all require similar data
submissions and quarterly statements until the work is completed or
there is a final price redetermination. However, the previous
estimates included different hours per response. Given the
similarity in the reporting requirements, it is assumed that the
number of responses per contract and the amount of time per
response should be the same. As such, the basis for the estimates
for each clause has been revised as follows: o The burden for the
data submission requirement and the quarterly statement for each
clause are estimated separately. o The estimated hours per response
for the data submission requirement is 8 hours for the contractor
and 2 hours for the Government. This is modelled after the previous
estimates for FAR 52.216-5 and 52.216-6 (9000-0071) and accounts
for the significant amount of data required in the submission. o
The estimated hours per response for the quarterly statement is 1.5
hours for the contractor and 1 hour for the Government. This is
modelled after the previous estimates for FAR 52.216-16 and
52.216-17 (9000-0067) and accounts for the fact that the data in
this statement is much easier to compile. ● The estimated cost per
hour is based on use of the current (calendar year 2021) OPM GS
wage rate the rest of the United States for a GS-12/Step 5
employee. The prior estimates for the clauses at FAR 52.216-5 and
52.216-6 used a GS-9/Step 5 wage rate. The estimates for these
clauses now use the GS-12/Step 5 wage rate, since the employees
performing these functions are likely in similar positions to those
performing the functions for the other covered clauses.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
9000-0067 Supporting Statement 2022.02.16.docx
Economic Price Adjustment-Standard Supplies; Economic Price Adjustment-Semistandard Supplies; Economic Price Adjustment-Labor and Material